Reminiscent of the pre-regulating beijing commercial housing market, the real estate agent rue joon (alias) was inexhaustible: “when the city was hot, we could have a dozen in a day, and customers were anxious.” according to him, at the peak, 200 to 300 second-hand houses could be sold each month, but today the turnover stands at only a dozen。
According to data provided by the centre for the study of china's estates, from april 2017, the first month of the limited purchase policy, to september 2019, more than 9,000 new commercial projects were concluded in beijing, a decrease of about 90 per cent over the pre-regulation period. In terms of prices, the chief analyst of china's real estate, zhang dawei, claimed that second-hand merchant housing had fallen by 40 per cent over its peak, while brokers claimed that some projects had fallen by almost half。
Number of commercial project transactions decreased by 90 per cent compared to pre-regulation
The commercial housing project is the type of product that converts commercial, office-based land into residential housing, which cannot be housed or used in housing packages such as school districts. The “business change” changes only the form of construction and the use function, the nature of the land will not change and property rights will be 40 or 50 years。
Following the implementation of a strict residential restraint policy in second-line cities, open-ended, low-total-cost commercial projects once became the preferred option for non-residents and investors, followed by large commercial projects in beijing and higher housing prices. Rue joon told me that china's xinjiang longitude (micro-sign: jwview) is considered to be the largest commercial project in beijing, with more than 9,700 houses in 19 buildings, which has been referred to as the “drive”。
Second-hand merchant housing on board. I'm going to take you to china
Recalling the transactions that took place before march 2017, when the limited purchase policy for commercial projects was put in place, rojoon said: “when the city was in the hottest place, the notion of `buying houses by robbing' was not exaggerated for beijing pixels. Our stores can be sold in a dozen units a day, and sometimes they are crowded with customers and owners, and have no place to sign a contract, so they can go to another store to sign.” according to roh joon, at the time of the highest price, the unit price of some small-house complex apartments had reached nearly $70,000/m2。
On 26 march 2017, departments such as the beijing city housing commission issued a bulletin on further strengthening business, office-type project management. The bulletin provides that when a sold commercial project is re-listed for sale, it may be sold to enterprises, social organizations or individuals, whose purchases should be consistent with the lack of housing and business property records in kyoto and whose social security or a tax is paid for five consecutive years; and commercial banks suspend loans to individual buyers for house purchases for projects。
Shortly after the publication of the above-mentioned bulletin, a number of large housing trading platforms were urgently set up for commercial housing projects. Several well-known business projects in beijing have not been identified on the platform, as found on the secure guest website and in its search at the nearest latitude. According to rue joon, the requirements for listing commercial projects are now the same as those for residences, and the industry primarily signs a trust agreement for the sale of houses and issues real estate certificates and identity cards, without which it cannot go online。
At roh joon's door shop, at the nearest latitude, he saw only a few brokers and no customers. According to rojoon, it is difficult to compare transactions with previous regulation, with more than 200 second-hand houses currently sold in beijing pixels, with a monthly turnover of about a dozen, more than twenty, and less than ten。
In accordance with the above-mentioned regulations, which were introduced in march 2017, the minimum division of units for the development of new business enterprises shall not be less than 500 square metres; the development enterprise shall be engaged in the construction (including sale) of commercial projects, the sale of which shall be to a legally registered enterprise, social organization. Following the issuance of the policy, transactions for new business-related projects in beijing fell off the cliff. According to data provided by the centre for the study of china's estates, from april 2017, the first month of the limited purchase date, to september 2019, a total of 9914 commercial projects had been concluded in beijing, compared to 9961 in the 30 months prior to the regulation, a decrease of approximately 90 per cent in the trade volume ratio。
02 price drops by 40%
The lincoln park project. I'm going to take you to china
The volume of transactions has fallen and the prices of the beijing-based commercial projects have fallen. In beijing pixels, for example, the sale price of the block's double flats has dropped from a peak of nearly $70,000/m2 to around $41,000/m2 and the price of the flats on the floor is estimated at 277,000-$28,000/m2, a 40 per cent reduction。
At beijing pixel north, china new was able to see a 46 square metre double apartment at a price of $40737 per square metre. Owing to the inability to lend, purchasers were required to pay a lump sum of $1. 88 million plus some taxes. However, roh joon stated that the owner was a businessman and was now selling it in good faith, that the price could be talked about and that it would be okay to drop tens of thousands。
The other three apartments rojoon was showing us, and the price was even covered. He said, “the mind of the owners has changed now, and not as hard as before, and they can accept price reductions. There is a 50 square metre flat that has not been sold for a long time because of high prices and the owners do not want to lower prices, but the prices of this type of household are falling, and the owner is unable to afford it, and now has a listing of 1. 45 million dollars, which is almost $1 million less than the highest point.”
A complex of 56 square metres, located on the top floor, at a total price of $2. 25 million and at a unit price of less than $40,000 per square metre, is the least expensive double apartment for beijing pixels, according to rojoon. However, on the afternoon of the same day, rue joon told the chinese new latitude that the apartment was eventually sold at 2. 2 million yuan at a price of approximately 388,000 yuan/m2。
Lincoln park, a well-known commercial project in the beijing yashi region. Data provided by the realtor zheng zheng (alias) indicate that over 60 square metres of the platform's two rooms in lincoln park were sold in 18 units in the last six months, at an average cost of about $385 million/m2. The listing price for a 67 square metre commercial house is $2. 45 million, although zheng zheng revealed that the owner's psychological price is now $100,000 lower than the listing price。
“the environment and complementarities of the lincoln apartment complex are good in the same area, with commercial projects selling 60,000 yuan per square metre before the purchase restrictions, while prices are now reduced by half in some poor households. The zone tells the chinese of the new latitude。
03 foams are coming out, experts say they've fallen
In the view of some industry, as prices decline, the value of well-positioned, mature business housing projects begins to return, making them attractive to both the neediest and investors seeking long-term investment value。
The director of research at the centre of the institute for evictions has made a drastic leap to the point that strict regulation has accelerated the bubbles in the market and that some commercial housing projects still have local, ancillary and residential advantages, and that such projects may have reached the stage of “fallless”。
Zhang dae wei said to china and new zealand: “the purchase of housing in the mature regions of beijing is a real stress for some people whose income and savings are not particularly high. Commercial housing is not an issue that cannot be taken into account, although it has a high mobility rate, a low safety factor, unsettled housing and the inability of children to enroll in film。
From an investment point of view, rojoon believes that beijing pixels are close to the beijing subway line 6 and that the surroundings are essentially mature, together with the small areas of water and electricity, some household gas, and that the occupancy and rental rates in the small areas have been high. “the total price of more than 50 square metres of double apartments now amounts to more than $2 million. If they are not available, some long-lease apartments can be rented and the rent paid at $8,000 a month is no problem, and the return on rent is much higher than that on housing.”
According to zhang dawei, some businesses now have rent returns of 3 to 5 per cent, from which point of view there is some value for investors. Commercial housing, however, cannot be loaned as a more difficult investment threshold。
“the living environment here cannot be compared with the residential neighborhood, and the greatest advantage is that it is cheaper.” rojoon, speaking of the trend in commercial housing prices, said, “it is hard to say that i can't judge the price again.”
(preliminary title: 90 per cent drop in trade volume, 40 per cent drop in second-hand house prices, and can beijing merchant housing now be bought?)
